General social security benefit

In line with the Programme of Prime Minister Petteri Orpo's Government, the Government will implement a reform of basic social security to improve the profitability of work, streamline social security and simplify benefits, taking into account the recommendations and reports issued in the Social Security Committee’s interim report.

The reform aims to create a general social security benefit that would include a basic allowance for living costs, an allowance for housing costs and a discretionary allowance as last-resort social security. The more detailed content and other details of the benefit will be specified as the preparations proceed.

The general social security benefit will taper against increasing income from work as linearly as possible, making it easier for people to predict and calculate the amount of take-home pay.

The aim of the benefit is to improve the profitability of work, streamline social security and simplify benefits.

The preparation of the model for a general social security benefit will advance in stages during the parliamentary term.

The first stage includes designing a single application model for Kela and introducing a general social security benefit for the first stage of the reform by the Government's mid-term policy review session. The procedural provisions concerning different benefits that guarantee a basic level of income security will be merged and the grounds for determining the benefits examined. The draft government proposal for introducing a general social security benefit for the first stage of the reform is set to be circulated for comments in spring 2025.

In the first stage, the working group tasked with drawing up the benefit model will also look into combining the basic unemployment allowance and labour market support into a general social security benefit.

The work to harmonise basic social security benefits has already begun with the abolition of exempt amounts and child increments at the end of 2023.

The Ministry of Social Affairs and Health has set up a working group to prepare the model for a general social security benefit. The working group consists of experts from the Ministry of Social Affairs and Health, the Ministry of Economic Affairs and Employment, the Ministry of Finance, the Finnish Institute for Health and Welfare and Kela.

Key labour market organisations, civil society organisations and other stakeholders will be consulted during the process. 

In practice, a single benefit application model means that clients could in future apply for several different benefits easily at the same time. The idea behind this model is to make use of the information available on clients from Kela and other authorities. Clients would only be asked to provide such necessary information that Kela cannot obtain from anywhere else. A key feature of the model is that the service guides clients to apply for benefits which they are probably entitled to. This means that clients do not need to be familiar with the social security system.

Kela will implement the single application service by using off-the-shelf software. The procurement process began in spring 2024, and from the tenders submitted, Kela selected Gofore Plc as a partner. The development work is currently underway.
 
The goal is to introduce the single application service by summer 2025, first for unemployment benefit clients. If clients so wish, the service will also include an assessment of their need for housing allowance.
 
The intention is to gradually expand the service to cover other benefits, too. The aim of the single application service is that clients can in future apply for several benefits at the same time.

• Single benefit application model (Kela)

No, it is not. The general social security benefit is a cause-based benefit, which means that there must be a reason for receiving it.

The criteria and grounds for being entitled to a basic social security benefit will vary depending on the claimant’s life situation. Claiming the benefit imposes obligations on the claimant, such as contributing to finding a job, accepting the offered services, pursuing education and training or rehabilitation, or other specifically mentioned obligations.

Basic social security benefits are paid in the event of incapacity for work or illness and during old age as well as at the birth of a child or the loss of a family provider. Basic social security benefits include minimum daily allowances and labour market support.

No, it is not. The model for a general social security benefit will be prepared taking into account the principles and characteristics of the Finnish social security system. 

Yes, it is. During this parliamentary term, the social security reform includes both government projects and the work of the Social Security Committee. The Government's social security projects will include a reform of basic social security with the introduction of a general social security benefit, a reform of social assistance, and a reform of the general housing allowance. 

The Parliamentary Social Security Committee, which consist of representatives of all parliamentary groups, proposed in its interim report in March 2023 that basic social security benefits be harmonised and combined. The model for a general social security benefit will be implemented as a government project in line with the Government Programme, taking into account the recommendations and reports issued in the Social Security Committee’s interim report.

The Social Security Committee monitors the preparations for launching the general social security benefit.

On the website of the Ministry of Social Affairs and Health.

• Social security reform